🇺🇸United States

Schedule SE Self-Employment Tax

Calculate Social Security & Medicare Tax

Easy~10 minTaxSelf-EmployedSocial SecurityMedicare

/ What is this form?

Schedule SE calculates the self-employment tax (Social Security + Medicare) you owe on net self-employment income. The rate is 15.3% (12.4% Social Security on first $168,600 + 2.9% Medicare on all earnings). Employees split this with their employer, but self-employed people pay both halves.

/ Who needs this form?

Anyone with net self-employment income of $400 or more
Filed alongside Schedule C and Form 1040

/ What you need before you start

Net profit from Schedule C

Any other self-employment income

/ Step-by-step guide

1Get Net Profit from Schedule C

Your net self-employment profit from Schedule C flows directly to Schedule SE. If you have multiple businesses, add all Schedule C profits together.

2Calculate Net Earnings

Multiply your net profit by 92.35% (0.9235). This adjustment accounts for the employer-equivalent deduction built into the SE tax calculation.

3Apply the Tax Rate

15.3% applies to net earnings up to the Social Security wage base ($168,600 in 2024). Above that, only 2.9% Medicare tax applies. An additional 0.9% applies above $200,000.

4Enter on Form 1040

Your SE tax total goes on Schedule 2 of Form 1040. You also get to deduct half of the SE tax as an adjustment to income on your 1040.

5Make Quarterly Estimated Payments

Pay estimated SE tax quarterly via Form 1040-ES to avoid underpayment penalties. SE tax is paid throughout the year, not just at filing.

/ Key fields explained

Field	What to enter	Common mistake
Net earnings from self-employment	Net profit from Schedule C multiplied by 92.35%	Forgetting to deduct the employer-equivalent half of SE tax on Form 1040 — this reduces your income tax

/ Common mistakes to avoid

Forgetting SE tax when calculating freelance profitability — it adds ~15.3% on top of income tax

Not deducting the employer-equivalent half on Form 1040 (this reduces your taxable income)

/ Frequently asked questions

How do I reduce SE tax?

Maximize business deductions on Schedule C to lower net profit. For consistently high earnings, consider an S-Corp election — distributions from S-Corps are not subject to SE tax.

Is SE tax in addition to income tax?

Yes. SE tax (15.3%) is separate from and in addition to federal income tax. You also get to deduct half of the SE tax when calculating your income tax.